WebCPA reports that the Financial Accounting Standards Board and the International Accounting Standards Board have agreed in broad terms on the definition of "fair value." Fair value will likely be defined as exit price and will be generally considered to be market-based according to reasonable pricing assumptions. The boards defined conditions under which an initial valuation might no longer hold and laid out scenarios under which markets might be considered "orderly." The full set of tentative decisions can be read here.

Fair Value is one of the biggest concerns the boards face as they race to "converge," or integrate, U.S. GAAP with International Financial Reporting Standards (IFRS) by June 2011.

Valuation of assets has always been a complex endeavor, but with the rapidly changing regulatory environment, we suggest being in regular contact with your financial professionals. If you have any questions about assets you're carrying or planning to acquire, please contact us today.